New York Community Bancorp Explores Selling Rent-Regulated Commercial Real Estate and Offloading Mortgage Risk
New York Community Bancorp Inc. is seeking to offload troubled commercial real estate assets following a $185 million loss from two loans in its fourth-quarter earnings. The lender is offering a $22.4 million mortgage backed by rent-regulated apartments in Washington Heights, Manhattan, as part of its efforts to address its exposure to problem real-estate loans. The bank's stock has plummeted by over 60% this year, and it faces significant maturities in the next few years. Regional banks, including New York Community Bancorp, are grappling with challenges in the commercial real estate sector, with concerns raised by Treasury Secretary Janet Yellen. Moody's Investors Service recently downgraded the bank's credit rating, but the bank's CEO stated that they have taken steps to strengthen their balance sheet and risk management processes.